Domestic demand for natural gas, driven by an electricity sector that is more than 95% dependent on this resource, exceeded 45 billion cubic metres in 2023. This structural trend has a direct impact on the volumes available for export. In 2024, natural gas exports reached around 49 billion cubic metres, down slightly from 2023, including 11 to 12 million tonnes of liquefied natural gas (LNG) mainly destined for Europe. This tension can be explained by the rigid nature of the sector: production, transport and liquefaction capacities, governed by long investment cycles, do not allow for rapid adjustments, especially since most exports are tied to medium- and long-term contracts.
To meet this challenge and preserve its energy sovereignty, Algeria is pursuing an ambitious goal of annual gas production of around 200 billion cubic metres within five years, compared with nearly 137 billion in 2023. This plan is part of a broader £60 billion investment programme for the period 2025-2029, mainly devoted to hydrocarbon exploration, transport and processing. Although the specific amounts and operational objectives of Sonatrach's 2026-2030 plan have not been detailed, its priorities are clear: to consolidate production capacities, secure critical infrastructure such as gas pipelines, and make the entire supply chain more reliable in order to serve both the domestic market and international customers.
The success of this strategy is crucial for the Algerian economy. It will determine the country's ability to guarantee its own electricity security while maintaining its role as a reliable gas supplier to Europe, in a volatile global geopolitical and energy environment.